Kinder Morgan Stock Analysis, Valuation (NYSE:KMI)
Investors can watch the Amigobulls Kinder Morgan stock analysis video here. Our analyst opinion covering the buy and sell arguments for KMI stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Kinder Morgan Inc Stock Rating 2.5/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for KMI stock analysis. Kinder Morgan valuation forms a crucial part of our stock analysis. Kinder Morgan stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy KMI stock?
- The TTM operating margin was good at 20.81 for Kinder Morgan.
- The company has a healthy free cash flow margin of 21.4.
Should you sell KMI stock?
- Kinder Morgan salesgrew by a marginal 1.8% year over year in 2018-06.
- Revenue growth of 2.1 has been weak over the last 5 years.
- Over the last 12 months, Kinder Morgan had an average Net loss of -1.8%.
- With a debt/equity ratio of 1.09, Kinder Morgan is highly leveraged in comparison to Oils-Energy peers.
- The company is trading at a price to sales multiple of 2.9, which is higher in comparison to the Oils-Energy sector average of 1.6, making KMI stock expensive.
- The company has a negative Return on Invested Capital of -0.5, which is a red flag.
- A negative ROE of -0.7 indicates that the company is not able to generate profits with the money shareholders have invested.
Investors can make use of the Amigobulls Kinder Morgan stock analysis to ascertain how KMI stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Kinder Morgan revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.